Mortgage Information
Should I Refinance?
September 23, 2009 by Jane Peters · Leave a Comment
Courtesy of Rick Pelleriti an Upfront Mortgage Broker with Clarion Mortgage Capital, below are some tips to decide whether you should refinance your California home loan.
How much will it cost to refinance?
This is based on a current rate of $729,750 financed at 5.50% with a new rate of 5.00%.
That cost, including the loan origination fee will be $6,791.
What will my monthly savings be?
Monthly savings with the lower interest rate will be $225.98.
How much will I save over 10 years?
Your savings should be $27,118 over 10 years.
The return on investment in this example is 14.85%. However, this does not take into consideration investment of the monies saved or increase in the home equity due to lower interest rate over 10 years resulting in a lower loan balance.
So, if you are considering whether to refinance, it would be advisable to consult with a mortgage broker to see if it makes sense.
Rick will advise you at no charge. What do you have to lose!
